Daily Gold & Silver Market Report – 7/27/2016

Brandi Brundidge

7/27/2016 9:50:00 AM

PRECIOUS METALS CLIMB AHEAD OF FED STATEMENT

Gold and Silver are slightly up Wednesday ahead of the Federal Reserve statement, which will be released at 2 p.m. (ET).  Traders predict the Fed will only increase interest rates once this year, likely in December after the presidential election. Gold has soared 24 percent in 2016, mostly due to global financial uncertainty.  Additional factors have supported Precious Metals this year, such as U.K.’s Brexit, high unemployment rate in the U.S. and the Fed failing to hike rates four times this year as originally planned.

The Fed’s language in their statement Monday afternoon will be highly analyzed to find clues on the condition of the U.S. economy that can lead the way for the next interest rate hike. "I think they're going to want to try to open the door for rate hikes later in the year. It's a delicate balancing act. They don't want to sound so grim about the outlook that would lead people to believe the Fed knows something the rest of us don't," Robert Tipp, Prudential Financial head of global bonds and foreign exchange, said. "At the same time, they need to exude enough optimism to make the case that a hike is something they could get away with, but in the best interest of everyone."  The Fed typically keeps clues as to when a rate hike might occur to a bare minimum to prevent market volatility or a change to the U.S. dollar that could impact the economy.  

At 10:50 A.M. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,328.90 Up $5.50
• Silver, $20.03 Up $0.33
• Platinum, $1,123.40 Up $26.40
• Palladium, $699.80 Up $6.00

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